The administration of President Joe Biden said Tuesday it will seek to address supply chain vulnerabilities through "groupings of liked-minded allies" such as the Group of Seven amid an intensifying U.S.-China rivalry.
The announcement came as part of the actions the U.S. administration plans to take based on a 100-day review on supply chains of four key products -- semiconductors, critical minerals, pharmaceuticals and large-scale batteries for electric vehicles.
The review highlighted that the United States, once a global leader in chip production, has "outsourced and offshored too much semiconductor manufacturing in recent decades" and that the country and its allies "rely primarily on facilities in Taiwan" for leading edge logic chips, which are used for data processing.
"The loss of production capacity threatens all segments of the semiconductor supply chain as well as our long-term economic competitiveness," the White House said.
The United States has been among the countries hit by a global semiconductor shortage that has occurred amid the recovery of the auto industry following the coronavirus pandemic-induced economic downturn and an increasing demand for consumer electronics that use the chips.
Semiconductors are used in everything from smartphones and laptops to cars.
On critical minerals and materials, China has "an outsized share of the world's refining capacity," meaning that even if the United States were to diversify its sources of them or increase domestic extraction, it would still be reliant on Beijing for processing before use in product manufacturing, the review showed.
"To secure a reliable, sustainable supply of critical minerals and materials, the United States must work with allies and partners to diversify supply chains away from adversarial nations," the White House said.
It also said Washington should "expand multilateral diplomatic engagement on supply chain vulnerabilities, particularly through groupings of like-minded allies such as the Quad and the G-7."
The G-7 comprises industrialized democracies -- Britain, Canada, France, Germany, Italy, Japan, the United States plus the European Union. The Quad -- the United States, Japan, India and Australia -- is a group of four major Indo-Pacific democracies widely seen as a counterweight to China's rise.
The Biden administration also said it will establish a new task force led by the secretaries of commerce, transportation and agriculture to address near-term supply chain challenges, which will work to alleviate bottlenecks and supply constraints.
The administration also said it will launch a "trade strike force" led by the U.S. Trade Representative to propose enforcement actions against alleged unfair foreign trade practices that have eroded critical supply chains.